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GQG Partners: A Stock Unrightfully Punished by the Magellan Storm

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  Executive Summary Founder-led asset manager with a strong performance history and lowest quartile fee among global peers. Capital-light compounder with strong distribution channels to support organic growth. The business has grown FUM at 120% over 6 years but double-digit growth is a realistic expectation going forward. Strong alignment system between shareholders, management, employees and clients. Total inside ownership is approximately 75% with both Founders owning 73.5%. The stock is valued cheaply at 10x earnings, down from 16x late last year at IPO. The stock appears to be a “heads I win, tails I don't lose much” proposition. Business Summary GQG Partners (GQG) is a global boutique asset management firm focused on active equity portfolios. The firm is led by the Founders Ravij Jain and Tim Carver who started the business together in 2016. Since launching the business, GQG has grown its FUM from 800 million to 90 billion USD, presenting a 112.5-fold growth or 120% CAGR i...
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Value Investing: From Graham to Buffett and Beyond

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  In this blog post, I will be providing a book summary on Professor Bruce Greenwald's book  Value Investing: From Graham to Buffett and Beyond  (2021). In this book, Professor Greenwald explores the modern extention to value investing to successfully adapt with the changing economic and financial conditions. Economy activity, which has shifted from industry/manufacturing to services, has seen greater value placed on intangible capital relative to tangible capital. Hard asset-based businesses are becoming less important. Professor Greenwald addresses this paradigm shift, showing us how to gain an analytical advantage, how to think about valuations and the way to quantify growth.  Gaining an Edge by Specialisation Either by design or practice, investors must specialise. Specialisation is the the most obvious way to improve the odds of being on the ride side of the trade. Investors have generally performed better starting from a very ...
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